During a meeting this morning I used the phrase (and I don’t know if I need to credit it) the internal stock market, to describe how people are perceived and how talent is managed within an organisation. The person I was meeting expressed some enthusiasm for the phrase and in the time since the meeting the idea has been turning over in my brain and here’s where I’ve got to so far…
Stocks are valued on a perception of future performance, based on cashflow projections derived from strategy validated by track record. Is this how we perceive employees and does this point to the perennial debate about performance vs. potential?
Companies present to the market on a regular basis their projections, strategy and review their track record. Is this your performance review or the update to the board? Is this your chance to position your internal stock within the business?
Analysts crunch numbers and make recommendations. They provide the models to value the stock. They produce numbers and recommendations but eventually it’s investors who buy or sell. So are HR the analysts? Providing the model for the investors (the line management or business leadership) to make investment decisions?
Some investors are after long term value, some dabble and some are relatively small. Is this akin to support to develop potential or the need for quick performance to remain credible? Does the size of the investor align to the influence and power of whoever is rating you or sponsoring you?
According to the New York Stock Exchange a blue chip stock is a stock with a “reputation for quality, reliability and the ability to operate profitably in good times and bad”. Does this relate to those employees are just known to get it done. Whatever happens whatever the circumstances they just deliver? But will their value increase dramatically?
I haven’t finished thinking about this yet but thought the analogy may be improved by sharing it and challenging it. Also I am sure there’s something about bull & bear markets and where does organisational politics meet shorting stock?
Anyway, that’s as much as I’ve got so far….anyone else got anything?